Overview
- Michael Burry launched a paid Substack after deregistering his hedge fund, warning of an AI bubble, labeling Nvidia the modern Cisco, and centering his critique on “supply-side gluttony.”
- Nvidia reported about $57 billion in quarterly revenue with roughly 62% growth and guided to around $65 billion next quarter as Jensen Huang and Colette Kress rejected bubble claims and defended chip longevity.
- Burry said he stands by his analysis after reports that Nvidia circulated a memo to analysts addressing his criticisms on issues including circular financing and accounting.
- Investor Ruchir Sharma estimated that about 40% of U.S. growth this year comes from AI capex and roughly 80% of recent stock gains are AI-linked, cautioning that renewed inflation and Fed tightening could end the euphoria.
- Alphabet’s AI news drove a 6.3% jump that lifted peers such as Broadcom 11.1%, underscoring index sensitivity to single names as other strategists frame the pullback as a healthy reset supported by deep industrial backlogs.